According to analysts of Wall Street, Large institutional investors are seemingly moving away from Bitcoin in favor of gold. In fact, JPMorgan’s recent note to investors read “Over the past month, Bitcoin futures markets experienced their steepest and more sustained liquidation since the Bitcoin ascent started last October. These liquidations have corresponded with inflows into gold ETFs.”

Gold is Making a Comeback as Crypto Market Bleeds Dry

The gold market has seen the biggest two weeks of inflows since October and prices are edging closer to $1,900 an ounce. Earlier last week, Gold’s price broke through key resistance, touching $1,890 an ounce for the first time since January while inching towards its all-time high of $2,067.

In contrast, Bitcoin has plunged by almost 40% from a $63,000 peak and funds are recording massive outflows. U.S’s weakening dollar and falling inflation-adjusted yields are among the reasons for the revival of gold.

Meanwhile, JPMorgan & Chase & Co. and ByteTree Asset Management believe that gold’s recent revival comes as Bitcoin investors rotate between the two.

In fact, Charlie Morris, founder of ByteTree said a note:

“There is still so much confusion between Bitcoin and gold. They coexist, and they both thrive in an inflationary environment.”

Morris suggested that fund flows are having an unusually large impact in boosting the price of gold with Bitcoin’s outgoing flows are decreasing the cryptocurrency’s price.

Institutional Investors Moving to Gold from Bitcoin Making Wall Street Ponder too

Earlier this year, Bitcoin funds pulled in institutional cash as more than $20 billion then left the gold-backed ETFs in the six months to April.

Since the COVID-19 stimulus package leading to an economic rebound in November, exchange-traded funds tracking gold sold almost 12 million troy ounces from the start of May, worth about $22.5 billion at today’s price.

Consequently, investors pulled almost $14 billion from the SPDR Gold Shares ETF in the period, cutting total assets in the world’s largest gold ETF by 29%. Some $1.6 billion has flowed back into the fund making May month the best for Gold.